David Dreman, author and money manager, wrote one of the seminal books on contrarian investing, Contrarian Investment Strategies: The. These books are the basis for the AAII David Dreman screen. Dreman Screen. Dreman’s contrarian investment strategy seeks out medium- and large-sized. courses: Living in the Environment, 16th edition ( pages, Brooks/Cole ),. . B. Millman, University of Massachuse.
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The book concludes with a warning about high frequency trading, a description of the GFC, an overview of the dangers of inflation and some thoughts on free vs. Despite it being written almost 20 years ago, the strategies outlined here are still applicable. The school technical stratfgies views that all fundamental information about a security has already been reflected in the price.
When the enormous surge of speculative enthusiasm ends and the bubble begins to implode the crowd becomes as extreme in its panic as it was euphoric. The realignment of price and value is drema immediate nor consistent. He is even handed in his disdain for all the systems – fundamental, technical, momentum and market timing.
Contrarian Investment Strategies: The Classic Edition
Written init is remarkable how much history repeats itself. I tried to extract points from the book, which I believe are either unique or original as far as the field of investment concerns. Stanley Aog rated it liked it Aug 12, Nobel Laureate Herbert Simon Human processes very small proportion of info he receives.
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David Dreman – Contrarian Investment Strategies – PDF Drive
There were manias and panics, include tech stock manias, in the 60s and 70s. Goodreads helps you keep track of books you want to read. Published May 18th by Free Press first published January 12th To capture the crowd, this image must be extremely simple. If you like books and love to build cool products, we may be looking for you. Jul 21, Yushi Wei rated it it was amazing.
The Classic Edition by David Dreman. Backing up the data is a lengthy but good discussion on investor psychology along the lines of Shiller’s Irrational Exuberance that goes through the main behavioral biases that provide opportunities for value investors.
Harsh Patel rated it it was amazing Feb 15, Gustave LeBon’s theory of “psychological crowd” Crowds think, and only think, in images. Contrarian Investment Strategies provides a clear synthesis of the research that backs value investing. At the heart of his book is a fundamental psychological insight: Thomas Nilsson rated it liked it May 19, Sansondubey rated it it was amazing Jan 14, People prefer to see strong and immediate correlation between the price and the perceived value of a stock, as it offers an immediate explanation reason bias of the prevalent phenomenon, which provide comfort psychologically by reducing the level of uncertainty.
Although EMH has been disproved by black swan events in many circumstances, it still has a large support base due to the lacking of a better theory. The Classic Edition better.
Thus continued good news has limited impact on a high flyer with high PE, but a negative surprise will hammer the stock. I hope such list can be used as a quick reference this great work of Dreman? Through this book, Dreman systematically demonstrated the absurdity of such an assumption, and proved that the market is everything but rational.
Contrarian Investment Strategies: The Classic Edition by David Dreman
All in all, I believe the book remains as relevant today as it was in the mid’s, particularly as the IPO market gears up again, this time with social networking stocks. Remember to think for yourself and do not follow the crowd!
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Gert Van Huynegem rated it liked it Sep 22, Lists with This Book. Not a fan of the Goldman Sachs crowd.
Dreman lays out a straightforward plan for making money in the stock market over a long term horizon with less risk.